Insurance Risk Management
It allows you to carry out advanced risk analyzes based on scenarios in order to define the optimal insurance program. Can be natively integrated with the ERM-ESG moduleTry KRC
DEFINITION AND ANALYSIS OF THE CONTEXT
It allows the configuration of the internal context, the external one and the specific one related to the management of the insurance program.
With reference to the internal and external context, it is possible to configure corporate, business, organizational governance elements connected to the business sector and the value chain.
With reference to the specific context for the definition of the insurance program, it is possible to configure the set of policies that are part of the "as is" insurance program, mapping the guarantees and limits (maximums, deductibles, overdrafts). Furthermore, always in the specific context, it is possible to define and manage the risk model (see next paragraph) to be analyzed through the insurance risk assessment phase.
DEFINITION OF THE RISK MODEL
The Risk Model can be defined flexibly and according to a multi-level tree structure. The risk, already in the definition phase, can be associated with various attributes (e.g. ESG, insurable, etc.). If the ERM-ESG module is also used, it is possible to create connections with the ERM-ESG risk model in order to benefit from integration effects.
METHODOLOGIES AND CRITERIA
It allows you to configure and define the impacts on which you want to carry out the risk assessment. By way of example but not limited to: damages from death and personal injury to third parties, material damages to property of third parties and related damages from business interruption, direct and indirect damages, environmental damages, legal expenses.
It allows you to select from a library of methodologies and criteria, the parameters that allow the determination of the levels and related classes of risk, the types of Qualitative and/or Quantitative evaluation and the levels of risk acceptability (Risk Tollerance).
INSURANCE RISK ASSESSMENT
For each risk defined within the model, it is possible to carry out qualitative and quantitative analyses:
- the former are characterized by the assessment of the various impacts (e.g. damage from death and personal injury to third parties, material damage to third party property and related damage from business interruption, direct and indirect damage, environmental damage, legal costs) being able to associate each of them economic estimates of expected damage.
- the latter allow quantitative «scenario analysis» to be carried out (Monte Carlo method) obtaining as output values derived from probability distributions on predefined target variables (e.g. Cash Flow, Ebitda, Expected Damage). KRC® uses the R library (statistical programming language) for the analyzes and this allows ample possibilities in terms of choice of distributions (normal, lognormal, exponential) and statistical models.
Quantitative analyzes on KRC® can also be carried out by taking a set of risks as a reference, possibly studying and considering (after a preliminary analysis) correlation effects.
The Treatment phase makes it possible to plan, on the basis of the risk assessment carried out, the optimal risk transfer strategy and the related Plans with the allocation of responsibilities.
The Insurance Risk Manager will be able to follow all the progress of the planned actions through specific dashboards on his home page.
COMMUNICATION AND REPORTING
In KRC® it is possible to generate and manage reports containing the most significant information (which can be defined in advance) following the assessment of insurance risks. The various reports generated over time can be consulted by accessing a special control panel
The platform provides dashboards and interactive heat maps that respond dynamically to special filters that query the entire database, and that allow the evaluation results to be compared between two different dates.